The Washington State Economic and Revenue Forecast Council released its February monthly revenue update on Friday which showed little growth. Tax collections came in slightly higher at $60.5 million, or 2.6 percent, reversing a 2 percent decrease from the January update. Collections in the two month period have been closely aligned with the November 2024 revenue forecast, returning $17.2 million or 0.2 percent less than expected.
The minimal growth was fueled in part by larger-than-expected increases in sales tax growth likely caused by accelerated large purchases to avoid possible tariffs. Real estate tax receipts were $8.0 million or 11 percent higher than expected.
The next revenue forecast is scheduled for March 18th, which budget writers will use to finalize their own budget proposals following the former Gov. Inslee’s budget that was released late last year.